Those figures, if they came to pass, would likely prevent any rally in oil prices. The International Energy Agency says that U.S. oil production could end 2017 up 920,000 barrels per day (bpd) from a year earlier. The reason seems to be growing concerns that oil prices will tank because of too much drilling. Reuters says that eight prominent hedge funds have recently cut their investments in ten top shale companies, reducing their exposure by $400 million. UBS AG analysts said that $45 oil “slows most U.S. shale plays.”There are other problems for U.S. shale.

as informed in

Oil Sands Output Growth Second Only To Shale

The dirt argument, which concerns the energy intensity of oil sands production compared to other oil extraction methods, has been partially refuted: some oil production in California is dirtier than oil sands. This means that Canada’s oil sands will be the second-largest source of oil supply growth, after the U.S. shale patch. Canada’s Mordor, as environmentalists like to call the oil sands, is notorious for how “dirty” oil extraction is there. Despite all the efficiency and utilization rate improvements already made, oil sands extraction remains a high-cost production method compared with conventional oil and shale. The price argument is also being refuted by the producers themselves: oil sands extraction is becoming cheaper, and it is rising.

as informed in

Those figures, if they came to pass, would likely prevent any rally in oil prices. The International Energy Agency says that U.S. oil production could end 2017 up 920,000 barrels per day (bpd) from a year earlier. The reason seems to be growing concerns that oil prices will tank because of too much drilling. Reuters says that eight prominent hedge funds have recently cut their investments in ten top shale companies, reducing their exposure by $400 million. “The growth outlooks proposed by many oily E&Ps appear tenuous at best and not resilient to prolonged weak oil prices,” Mizuho Securities USA analysts Timothy Rezvan and James Lizzul wrote in a research note.